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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs)

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To: Dan P who wrote (367)5/9/1999 6:22:00 PM
From: The Barracudaâ„¢  Read Replies (1) of 972
 
I'm convinced that at current prices, the average gold fund will out perform the average gold stock. The funds have tons of underwater warrants that are valueless. If gold shares rise, some of these warrants will go in the money, which will give a positive kick to the mutual funds NAV. Individual gold stocks don't have warrants attached.

Also, the funds have a lower risk than individual shares do.

It seems to me that for now, gold funds will offer higher returns with lower risk; something that is supposed to be impossible in the financial markets.

Do you agree?

Robert
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